Exhibit 10 STAR CORPORATION BALANCE SHEET
FISCAL YEAR ENDING 12/31/2004
(DOLIARS IN

question 72

Multiple Choice

Exhibit 10.2
Use the Information Below for the Following Problem(S)
STAR CORPORATION INCOME STATEMENT
FISCAL YEAR ENDING 12/31/2004
(DOLIARS IN THOUSANDS)
$\begin{array}{c}\begin{array}{lll}Net Sales\\Cost of Goods Sold\\Gross Profit Margin\\Depreciation\\Operating Expense\\Administrative Expense\\Operating Profit\\Interest\\Profit Before Tax\\Taxes\\\end{array}\begin{array}{lll}&&&\end{array}\begin{array}{r}\$ 1075 \\706 \\\hline 369 \\30 \\109 \\129 \\\hline 101 \\29 \\\hline 72 \\21 \\\hline \$ 51\\\end{array}\end{array}$
STAR CORPORATION BALANCE SHEET
FISCAL YEAR ENDING 12/31/2004
(DOLIARS IN THOUSANDS)

$\begin{array}{c}\begin{array}{lll}\text{Assets}\\\text{Cash}\\\text{Accounts receivable}\\\text{Inventory}\\\text{Total current assets}\\\text{Net fixed assets}\\\\\\\\\\\text{Total assets}\\\end{array}\begin{array}{r}\\\$ \quad 69 \\233 \\348 \\\hline 650 \\886 \\\hline\\\\\\\\\$ 1536\end{array}\begin{array}{lll}\text{Liabilities}\\\text{Notes payable}\\\text{Accounts payable}\\\text{Accruals}\\\text{Total current liabilities}\\\text{Long term debt}\\\text{Common stock (\$1.50 par) }\\\text{Paid in surplus}\\\text{Retained earnings}\\\text{Total liabilities and}\\\text{Stockholders' equity}\\\end{array}\begin{array}{r}\\\$ \quad 231 \\146 \\31 \\\hline 408 \\318 \\111 \\190 \\509 \\\hline\\\$1536\end{array}\end{array}$
-Refer to Exhibit 10.2.What was Star's fixed asset turnover ratio?

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Definitions:

Motorcycle

A two-wheeled vehicle powered by an engine, designed for travel on public roads and often used for recreation or transportation.

Opportunity Cost

Represents the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Tractor

A powerful vehicle designed primarily for agricultural use, to pull farm machinery and plough agricultural land.

Motorcycle

A two-wheeled motorized vehicle, widely used for both transportation and recreation.